,

STRATEGIC BRAND MANAGEMENT

BUIlDING, ~1tASURING, AND MANAGING BRAND fQUITY

THIRD EDITION

Kevin Lane Keller

Amos Tuck School ofBusiness
Dartmouth College

----
PEARSON
Prentice
Hall
Pearson Education International
BRIEF CONTENTS

Part I: Opening Perspectives 1

Chapter 1 Brands and Brand Management

Part II: Identifying and Establishing Brand Positioning

and Values 47

Chapter 2 Customer-Based Brand Equity 47

Chapter 3 Brand Positioning 97

Part III: Planning and Implementing Brand Marketing

Programs 139

Chapter 4 Choosing Brand Elements to Build Brand Equity 139

Chapter 5 Designing Marketing Programs to Build Brand

Equity 184

Chapter 6 Integrating Marketing Communications to Build

Brand Equity 229

Chapter 7 Leveraging Secondary Brand Associations to Build

Brand Equity 279

Part IV: Measuring and Interpreting Brand Performance 315

Chapter 8 Developing a Brand Equity Measurement and

Management System 315

Chapter 9 Measuring Sources of Brand Equity: Capturing Customer

Mind-Set 353

Chapter 10 Measuring Outcomes of Brand Equity: Capturing Market

Performance 402

Part V: Growing and Sustaining Brand Equity 432

Chapter 11 Designing and Implementing Branding

Strategies 432

Chapter 12 Introducing and l'Jaming New Products and Brand

Extensions 489

Chapter 13 Managing Brands over Time 546

Chapter 14 Managing Brands over Geographic Boundaries and

Market Segments 588

Part VI: Closing Perspectives 635

Chapter 15 Closing Observations 635

iv

Prologue: Branding Is Not Rocket Science xiv

Preface xv

Acknowledgments xx

About the Author xxi

Part I: Opening Perspectives 1

Chapter 1 Brands and Brand Management 1

Preview 2

What Is a Brand? 2

Brands versus Products 3

Why Do Brands Matter? 6

Consumers 6

Firms 9

Can Everything Be Branded? 10

Physical Goods 11

Services 15

Retailers and Distributors 17

Online Products and Services 19

People and Organizations 21

Sports, Arts, andEntertainment 23

Geographic Locations 25

Ideas andCauses 26

What Are the Strongest Brands? 27

Branding Challenges and Opportunities 30

Savvy Customers 30

Brand Proliferation 35

Media Fragmentation 35

Increased Competition 36

Increased Costs 36

Greater Accountability 36

The Brand Equity Concept 37

Strategic Brand Management Process 38

Identifying and Establishing Brand Positioning 38

Planning andImplementing Brand Marketing Programs 39

Measuring and Interpreting Brand Performance 40

Growing and Sustaining Brand Equity 41

Review 42

Discussion Questions 42

Brand Focus 1.0 Historical Origins of Branding 43

v
vi CONTENTS

Part II: Identifying and Establishing Brand

Positioning and Values 47

Chapter 2 Customer-Based Brand Equity 47

Preview 48

Customer-Based Brand Equity 48

Brand Equity asa Bridge 49

Making a Brand Strong: Brand Knowledge 51

Sources of Brand Equity 53

Brand Awareness 54

Brand Image 56

Building a Strong Brand: The Four Steps

of Brand Building 59

Brand Building Blocks 60

Brand Salience 60

Brand Performance 64

Brand Imagery 65

Brand Judgments 67

Brand Feelings 68

Brand Resonance 72

Brand-Building Implications 74

Creating Customer Value 79

Customer Relationship Management 79

Customer Equity 81

Relationship of Customer Equity to Brand Equity 84

Review 86

Discussion Questions 87

Brand Focus 2.0 The MarketingAdvantages of Strong Brands 88

Chapter 3 Brand Positioning 97

Preview 98

Identifying and Establishing Brand Positioning 98

Basic Concepts 98

Target Market 99

Nature of Competition 104

Points of Parity and Points of Difference 107

Positioning Guidelines 110

Defining andCommunicating the Competitive

Frame of Reference 110

Choosing Points of Difference 114

Establishing Points of Parity andPoints of Difference 115

Updating Positioning over Time 117

Defining and Establishing Brand Mantras 121

Core Brand Associations 121

Brand Mantras 122

Internal Branding 125

 CONTENTS vii

Brand Audits 126

Brand Inventory 128

Brand Exploratory 129

Brand Positioning and the Supporting Marketing

Program 131

Review 131

Discussion Questions 132

Brand Focus 3.0 Rolex Brand Audit 132

Part III: Planning and Implementing

Brand Marketing Programs 139

Chapter 4 Choosing Brand Elements

to Build Brand Equity 139

Preview 140

Criteria for Choosing Brand Elements 140

Memorability 140

Meaningfulness 141

Likability 142

Transferability 142

Adaptability 143

Protectability 143

Options and Tactics for Brand Elements 144

Brand Names 145

URLs 154

Logos and Symbols 155

Characters 157

Slogans 159

Jingles 164

Packaging 165

Putting It All Together 174

Review 176

Discussion Questions 178

Brand Focus 4.0 Legal Branding Considerations 179

Chapter 5 Designing Marketing Programs

to Build Brand Equity 184

Preview 185

New Perspectives on Marketing 185

Integrating Marketing Programs andActivities 186

Personalizing Marketing 188

Reconciling the NewMarketing Approaches 194

Product Strategy 194

Perceived Quality and Value 195

Relationship Marketing 196

Summary 199

viii CONTENTS

Pricing Strategy 200

Consumer Price Perceptions 200

Setting Prices to Build Brand Equity 201

Summary 211

Channel Strategy 211

Channel Design 211

Indirect Channels 214

Direct Channels 217

Web Strategies 218

Summary 219

Review 220

Discussion Questions 221

Brand Focus 5.0 Private Label Strategies and Responses 222

Chapter 6 Integrating Marketing Communications

to Build Brand Equity 229

Preview 230

The New Media Environment 231

Challenges in Designing Brand-Building Communications 232

Role of MultipleCommunications 234

Overview of Marketing Communication Options 235

Advertising 235

Promotion 256

Event Marketing andSponsorship 259

Public Relations andPublicity 264

Personal Selling 266

Developing Integrated Marketing

Communication Programs 267

Criteria for IMC Programs 267

Using IMC Choice Criteria 271

Review 272

Discussion Questions 273

Brand Focus 6.0 Coordinating Media to Build Brand Equity 274

Chapter 7 Leveraging Secondary Brand Associations

to Build Brand Equity 279

Preview 280

Conceptualizing the leveraging Process 281

Creation of NewBrand Associations 281

Effects on Existing Brand Knowledge 282

Guidelines 283

Company 284

Country of Origin and Other GeographicAreas 285

Channels of Distribution 288

Co-Branding 289

Guidelines 292

Ingredient Branding 298

 CONTENTS
ix

licensing 301

Guidelines 303

Celebrity Endorsement 304

Potential Problems 305

Guidelines 307

Sporting, Cultural, or Other Events 307

Third-Party Sources 308

Review 311

Discussion Questions 311

Brand Focus 7.0 Going for Corporate Gold at the Olympics 312

Part IV: Measuring and Interpreting Brand Performance 315

Chapter 8 Developing a Brand Equity Measurement and

Management System 315

Preview 316

The New Accountability 316

The Brand Value Chain 317

Value Stages 318

Implications 324

Designing Brand Tracking Studies 325

Whatto Track 325

How to Conduct Tracking Studies 330

Howto Interpret Tracking Studies 332

Establishing a Brand Equity Management System 333

Brand Equity Charter 333

Brand Equity Report 336

Brand Equity Responsibilities 339

Review 348

Discussion Questions 349

Brand Focus 8.0 Managing Brands at Ogilvy & Mather 350

Chapter 9 Measuring Sources of Brand Equity: Capturing

Customer Mind-Set 353

Preview 354

Qualitative Research Techniques 354

Free Association 355

Projective Techniques 360

Zaltman Metaphor Elicitation Technique 365

Brand Personality and Values 369

Experiential Methods 370

Summary 373

Quantitative Research Techniques 374

Awareness 374

Brand Image 379

Brand Responses 383

Brand Relationships 386

 I"

x CONTENTS

Comprehensive Models of Consumer-Based Brand Equity 390

Brand Dynamics 390

Equity Engine 391

Relationship to the CBBE Model 392

Review 392

Discussion Questions 393

Brand Focus 9.0 Young & Rubicam's BrandAsset Valuator 393

Chapter 10 Measuring Outcomes of Brand Equity:

Capturing Market Performance 402

Preview 403

Comparative Methods 404

Brand-Based Comparative Approaches 404

Marketing-Based Comparative Approaches 405

Conjoint Analysis 409

Holistic Methods 410

Residual Approaches 411

Valuation Approaches 413

Review 422

Discussion Questions 426

Brand Focus 10.0 Branding and Finance 427

Part V: Growing and Sustaining Brand Equity 432

Chapter 11 Designing and Implementing

Branding Strategies 432

Preview 433

Brand Architecture 433

The Brand-Product Matrix 433

Breadth of a Branding Strategy 434

Depth of a Branding Strategy 439

Brand Hierarchy 446

Building Equity at Different Hierarchy Levels 448

Corporate Image Dimensions 453

Designing a Branding Strategy 462

Number of Levels of the Brand Hierarchy 464

Desired Awareness and Image at Each Hierarchy Level 466

Combining Brand Elements from Different Levels 467

Linking Brand Elements to Multiple Products 468

Developing a Brand Architecture 469

Adjustments to the Marketing Program 469

Using Cause Marketing to Build Brand Equity 473

Advantages of Cause Marketing 473

Designing Cause Marketing Programs 475

Green Marketing 477

Review 480

Discussion Questions 482

Brand Focus 11.0 Weathering a Brand Crisis: The Tylenol Experience 482

 CONTENTS
xi

Chapter 12 Introducing and Naming l\Iew Products

and Brand Extensions 489

Preview 490

New Products and Brand Extensions 490

Advantages of Extensions 494

Facilitate NewProduct Acceptance 494

Provide Feedback Benefits to the Parent Brand 499

Disadvantages of Brand Extensions 502

Can Confuse or Frustrate Consumers S02

Can Encounter Retailer Resistance 503

Can Fail and HurtParent Brand Image 506

Can Succeed but Cannibalize Sales of Parent Brand 506

Can Succeed but Diminish Identification with AnyOne Category 507

Can Succeed but Hurtthe Image of the Parent Brand 508

Can Dilute Brand Meaning 510

Can Cause the Company to Forgo the Chance to Develop a NewBrand 510

Understanding HowConsumers Evaluate Brand Extensions 511

Managerial Assumptions 511

Brand Extensions and Brand Equity 512

Vertical Brand Extensions 514

Evaluating Brand Extension Opportunities 517

Define Actual andDesired Consumer Knowledge aboutthe Brand 518

Identify Possible Extension Candidates 518

Evaluate the Potential ofthe Extension Candidate 519

Design Marketing Programs to Launch Extension 521

Evaluate Extension Success and Effects on Parent

Brand Equity 522

Extension Guidelines Based onAcademic Research 523

Review 538

Discussion Questions 538

Brand Focus 12.0 Guidelines for Profitable Line Extensions 539

Chapter 13 Managing Brands over Time 546

Preview 547

Reinforcing Brands 547

Maintaining Brand Consistency 548

Protecting Sources of Brand Equity 550

Fortifying versus Leveraging 551

Fine-Tuning the Supporting Marketing Program 551

Revitalizing Brands 558

Expanding Brand Awareness 566

Improving Brand Image 568

Entering NewMarkets 570

Adjustments to the Brand Portfolio 572

Migration Strategies 572

Acquiring New Customers 574

Retiring Brands 577

xii CONTENTS

Review 582

Discussion Questions 584

Brand Focus 13.0 Corporate Name Changes 584

Chapter 14 Managing Brands over Geographic

Boundaries and Market Segments 588

Preview 589

Regional Market Segments 589

Other Demographic and Cultural Segments 590

Rationale for Going International 591

Advantages of Global Marketing Programs 591

Economies of Scale in Production and Distribution 592

Lower Marketing Costs 593

Power and Scope 594

Consistency in Brand Image 595

Abilityto Leverage Good Ideas QUickly andEfficiently 595

Uniformity of Marketing Practices 596

Disadvantages of Global Marketing Programs 596

Differences in Consumer Needs, Wants, andUsage Patterns

for Products 597

Differences in Consumer Response to Marketing Mix Elements 597

Differences in Brand and Product Development

andthe Competitive Environment 598

Differences in the Legal Environment 598

Differences in Marketing Institutions 599

Differences in Administrative Procedures 599

Standardization versus Customization 599

Standardization andCustomization 601

Global Brand Strategy 603

Global Customer-Based Brand Equity 605

Global Brand Positioning 607

Building Global Customer-Based Brand Equity 607

1. Understand Similarities and Differences

in the Global Branding Landscape 608

2. Don'tTake Shortcuts in Brand BUilding 609

3. Establish Marketing Infrastructure 612

4. Embrace Integrated Marketing Communications 613

5. Cultivate Brand Partnerships 615

6. Balance Standardization andCustomization 618

7. Balance Global and Local Control 622

8. Establish Operable Guidelines 623

9. Implement a Global Brand Equity Measurement System 624

10.Leverage Brand Elements 624

Review 625

Discussion Questions 627

Brand Focus 14.0 China's Global Brand Ambitions 629

 CONTENTS xiii

Part VI: Closing Perspectives 635

Chapter 15 Closing Observations 635

Preview 636

Strategic Brand Management Guidelines 636

Summary of Customer-Based Brand Equity Framework 636

Tactical Guidelines 638

What Makes a Strong Brand? 642

Special Applications 644

Industrial andBusiness-to-Business Products 645

High-Tech Products 649

Services 652

Retailers 655

Small Businesses 660

Online 663

Future Brand Priorities 666

Building Brand Equity 666

Measuring Brand Equity 667

Managing Brand Equity 668

Achieving Marketing Balance 668

Review 673

Discussion Questions 673

Brand Focus 15.0 The Brand Report Card 674

Epilogue 676

Credits 677

Index 679